Insurance glossary

L

Lapse

This is when an insurance policy is terminated due to non-payment of the associated premium.

Lapsed policy

A policy terminated for non-payment of the associated premium.

Legal liability

This is the cover we include in our Possessions, Household and Travel policies free of charge which protects the Client if someone should want to take legal action against them.

Loading

There can be deemed a standard or average rate for a persons insurance, the loading is effectively what an individual will be charged in excess of this for their insurance. An example of this could be gender in respect of car insurance as women are generally charged less than a man with the same risk details.

Loss

Insurance terminology to mean being robbed, burgled, injured or in a car accident. A loss gives rise to a potential claim.

Loss adjuster

An independent third party usually used by an insurance company to assess the value of a claim, usually if there is a disagreement between the insurer and the insured.